S&P 500 is flat close to a document with all eyes on the Federal Reserve’s replace

US stocks were broadly unchanged on the Wednesday ahead of the Federal Reserve’s policy update.

The Dow Jones Industrial Average lost 40 points. The S&P 500 traded near the flatline, just a few points below an all-time high reached in the previous session. The technology-heavy Nasdaq Composite gained 0.2%.

Big tech stocks rose again to provide some support to the broader market. Apple and Microsoft each gained 0.8%, while Amazon and Netflix also traded in the green. The economic reopening was mixed with lower trade from the major airlines and the higher cruise lines. Royal Caribbean and Carnival both rose 1%.

The Fed will end its two-day meeting on Wednesday. The central bank is not expected to take monetary policy action, but it could signal that it is considering easing its bond buying policy. The Fed will also release new forecasts on Wednesday that could point to a possible first rate hike in 2023. Previously, the Fed officials had not agreed on a rate hike until 2023.

The Fed’s statement and forecast will be released at 2 p.m. ET, followed by a press conference from Chairman Jerome Powell 30 minutes later.

The meeting comes as inflation warms and producer prices rise in May at the highest annual rate in nearly 11 years, a report on Tuesday showed. This has led some, including Paul Tudor Jones, to urge the central bank to rethink its loose monetary policy.

“I still think stocks will go up,” said Rick Rieder, BlackRock’s global bond chief, on Wednesday in CNBC’s “Squawk Box”. “If we don’t hear otherwise, then I’m a little worried about the risk the system creates – you can create asset bubbles, you can create leverage on risky assets.”

The central bank buys $ 120 billion worth of bonds every month as the economy continues to recover from the coronavirus pandemic.

“The drama this week will be whether the Fed is stuck or admitting that inflation is rising and that the Fed needs to tighten,” said Brad McMillan, CIO, Commonwealth Financial Network. “Since the Fed has a dual mandate – unemployment and inflation – it suggests that it should indeed focus on unemployment rather than inflation.

Minutes from the last Fed meeting showed that some Fed officials said it might be appropriate to discuss adjustments to the bond purchase program should the economy continue to recover. Economists predict that while some of these discussions may begin, specific details won’t be revealed until later this year.

On Wednesday, China said it would release industrial metals like copper, aluminum and zinc from its national reserves in an effort to lower commodity prices. The copper price fell more than 10% from its record high and entered correction territory on Tuesday.

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